Financial Performance - Net cash inflow from operating activities decreased to TRY 41,721.5 million in 2023, down from TRY 42,281.1 million in 2022, indicating a stable performance year-over-year [968]. - Net cash outflow from investing activities decreased to TRY 20,905.8 million in 2023, from TRY 31,712.1 million in 2022, primarily due to increased cash outflows for property, plant, and equipment [969]. - Net cash inflow from financing activities increased to TRY 6,769.3 million in 2023, up from TRY 3,388.4 million in 2022, driven by higher inflows from derivative instruments and bond issues [970]. - Cash inflow from interest received increased to TRY 5,825.4 million in 2023, up from TRY 3,986.6 million in 2022, contributing positively to cash flow [969]. - The company expects total operational capital expenditures to be around 23% of revenues in 2024 [994]. - The company anticipates continued moderate cash outflows related to capital expenditures and potential 5G license investments [996]. Debt and Liquidity - Total debt as of December 31, 2023, was TRY 84,084.2 million, including TRY 2,427.6 million of lease obligations, reflecting the company's financing strategy [972]. - The debt-to-equity ratio improved to 68.8% as of December 31, 2023, compared to 81.1% in 2022, indicating better leverage management [977]. - The company has a strong liquidity position with cash equivalents of approximately USD 1.4 billion, covering debt service obligations due in the next two years [973]. - As of December 31, 2023, Turkcell's total contractual cash obligations amount to TRY 115.39 billion, with TRY 93.34 billion in loans and borrowings [1004]. - Turkcell Superonline has TRY 4.2 billion in short-term loans and TRY 4.7 billion in short-term intra-group loans [987]. Investments and Capital Expenditures - Turkcell's capital expenditures in 2023 focused on network infrastructure, renewable energy investments, and subscriber acquisition costs [994]. - The company has engaged in various financing agreements, including a EUR 30 million Green Loan for solar energy investments, demonstrating commitment to sustainability [985]. Subscriber and Market Trends - The proportion of postpaid subscribers in Turkey increased to 71.5% in 2023, up from 68.1% in 2022 and 66.4% in 2021, reflecting a focus on value [1014]. - The company expects an increase in revenue from mobile and fixed data due to rising smartphone penetration and a larger postpaid subscriber base [1016]. - The market for roaming revenues returned to pre-COVID levels in 2023 after significant restrictions in previous years [1017]. - The company anticipates a continued demand for higher data quotas in mobile services and higher-speed broadband packages in fixed broadband services [1018]. Research and Development - The company has invested significantly in R&D, employing around a thousand researchers at its wholly-owned subsidiary Turkcell Teknoloji [1012]. - The company is focusing on emerging technologies such as cybersecurity, artificial intelligence, and quantum technologies to enhance its technological competence [1010]. Regulatory and Economic Factors - The Turkish Lira depreciated by 36.5% against the USD in 2023, compared to a 28.2% depreciation in 2022, impacting the company's operations [1036]. - The ICTA has set maximum tariffs for national voice at TRY 3.12 per minute and national SMS at TRY 2.23 as of April 1, 2024 [1021]. - The company has faced restrictions in Ukraine regarding foreign exchange controls, which may impact future dividend distributions from subsidiaries [974]. Dividends and Shareholder Returns - The company approved a dividend payment of TRY 2.26 billion on September 13, 2023, to be distributed on December 20, 2023 [1008]. - The company approved a dividend payment of TRY 6,277.0 million, translating to a gross cash dividend of TRY 2.8532 per share, equivalent to USD 0.088542 [1009]. Financing Activities - Turkcell Superonline issued a total of TRY 1.45 billion in lease certificates in 2023, with interest rates ranging from 19.25% to 39% [986]. - Turkcell Odeme issued lease certificates totaling TRY 1.1 billion in 2023, with interest rates between 23% and 44.5% [990]. - Financell's total loan portfolio reached approximately TRY 5.8 billion as of December 31, 2023, with 6% (TRY 325 million) in foreign currency loans [989].

Financial Data and Key Metrics Changes - Group revenues increased by 76% in historical figures, while under inflationary accounting, the rise was 15% [12] - EBITDA surged by 83% on historical figures, with a 20% growth according to inflationary accounting [12] - Net income grew by 65% in historical figures and 82% in inflation-adjusted terms, driven by strong EBITDA performance [12] Business Line Data and Key Metrics Changes - Mobile segment saw a 3-point increase in post-paid share, exceeding 71%, with blended mobile ARPU growing by 85% year-on-year [3] - Fixed broadband segment registered 169,000 net additions for the full year, with ARPU widening by 76% year-on-year [4] - Digital services and solutions revenue grew by 19% year-on-year, with cloud service revenues increasing by 50% [5] Market Data and Key Metrics Changes - Turkcell's international revenues decreased by 1.8% to TRY2.6 billion, while base revenues rose 20% in local currency terms [7] - The Turkish Republic of Northern Cyprus subsidiary's revenues increased by 20% year-on-year, driven by strong real ARPU growth [7] Company Strategy and Development Direction - The company aims to focus on digital services, data centers, and cloud solutions to meet high demand [5][9] - Investments in renewable energy and data center capacity are prioritized to enhance operational efficiency and sustainability [15] - The company plans to maintain its leadership in 5G and beyond technologies [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflation and economic pressures but remains committed to digital transformation [41] - For 2024, the company expects high single-digit real revenue growth and an EBITDA margin of around 42% [10][12] - The guidance reflects macroeconomic dynamics, particularly inflation, which is projected at around 37% year-on-year [10][44] Other Important Information - The company has classified its Ukrainian subsidiaries as discontinued operations due to an ongoing sales process [7] - A significant rise in interest rates impacted Financell's margins, despite revenue growth [6] Q&A Session Summary Question: What is the bottom line net income number for full year 2023, including Ukraine? - The net income from discontinued operations is TRY1.9 billion [43] Question: Why is there a slowdown in revenue growth guidance for 2024? - The guidance reflects expected impacts of inflationary accounting and operational expectations, aiming for high single-digit growth [29] Question: Update on Ukraine operations and sale process? - A transfer agreement for Ukrainian subsidiaries was signed, but completion depends on certain conditions and legal proceedings [31] Question: What is the reason for the expected EBITDA growth in 2024? - The company anticipates strong real top line growth supported by sequential price adjustments, despite inflationary pressures [38] Question: Will there be a second increase in minimum wage affecting expenses? - Current assumptions do not include a second minimum wage increase, but the situation will be monitored post-elections [38]

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Q3 2023 Results Conference Call November 7, 2023 12:00 PM ET Kayahan Demirak - AK Investment Nagy Nora - Erste Group Bank AG Murat Ignebekçili - HSBC Thank you, [Gaeli]. Hello, everyone. Welcome to Turkcell's third quarter 2023 earnings call. I am Ozlem Yardim, and recently appointed as the Head of IR and M&A success. I'm here with the company more than a decade and excited to meet each of you in person in the near future. I'm always here to address your question ...

Financial Data and Key Metrics - Group revenues increased by TRY 9.2 billion, a 74% YoY growth, driven by Turkcell Turkey's expanding subscriber base and strong ARPU growth [19] - EBITDA reached TRY 9.5 billion, almost doubling YoY, with a 44% EBITDA margin, supported by strong top-line growth and reduced energy prices [37] - Net profit rose 70% YoY to TRY 3.2 billion, reflecting solid operational performance and prudent risk management [37] - Mobile ARPU accelerated by 84%, driven by price adjustments and upsell efforts, with a churn rate of 1.9% [28] - Residential fiber ARPU grew by 49%, surpassing quarterly average annual inflation, with 53% of fiber customers opting for 12-month or contract-free tariffs by June [16] Business Line Performance - Mobile operations: Postpaid subscribers increased by 404,000 in Q2, representing 70% of the mobile base, despite competitive pressures and rising acquisition costs [11] - Fixed broadband: Gained 40,000 fiber subscribers and 35,000 IPTV net additions in Q2, exceeding the annual homepass target with 165,000 additions in H1 [12][33] - Digital business services: Revenue grew 82% YoY, contributing 10% of total revenue, driven by system integration projects, data center, and cloud businesses [13] - Techfin: Paycell revenue rose 95% YoY, supported by Pay Later, mobile app store payments, and increased card usage [35] - International operations: Turkcell International revenue grew 48% YoY, with lifecell Ukraine revenue up 36% in local currency, exceeding inflation [23] Market Performance - Turkcell Turkey: Main driver of group revenue growth, supported by subscriber expansion and ARPU growth [19] - Ukraine: lifecell revenue grew 36% YoY in local currency, with EBITDA margin improving by 1.2 percentage points due to lower interconnection and energy costs [23] - Pakistan: OTT TV services surpassed 1 million active users through a partnership with Jazz [17] Strategic Focus and Industry Competition - Focus on inflationary pricing strategy, with price adjustments in August for both mobile and fixed services [30] - Continued investment in fiber expansion, with a take-up ratio expected to rebound as the company monetizes its investments [33] - Strategic partnerships in digital services, such as the nationwide QR payment project and collaborations with global studios for TV+ [14][38] - Regulatory environment: Expectation of 5G licensing and spectrum tender in 2024, with no immediate changes anticipated [62] Management Commentary on Operating Environment and Outlook - Management remains cautious on EBITDA margin for H2 due to expected energy price increases and a 37% wage hike in July [44][56] - Guidance for 2023 revised to 71% revenue growth, TRY 37 billion EBITDA, and 22% CapEx intensity [39] - FX risk management: Majority of cash held in hard currencies, with a net long FX position of US$84 million, within the neutral range [24][45] Other Key Information - CapEx intensity for the last 12 months was 20.7%, with mobile and fixed investments accounting for over 70% of total CapEx [20] - Cash position increased by TRY 7.8 billion in Q2, with FX movements contributing TRY 6.2 billion [41] - Net debt position stood at TRY 28.2 billion, with net leverage at 1x (0.8x excluding Financell) [41] Q&A Session Summary Question: Subscriber growth and ARPU outlook - Mobile subscriber growth slowed in Q2, with 165,000 net additions, driven by seasonality and prepaid segment challenges [54] - Price adjustments in August for mobile and fixed services, with further adjustments expected in Q4 to align with inflation [30][64] Question: CapEx intensity and FX impact - CapEx intensity expected to decrease slightly in 2024, but uncertainty remains due to FX dependency and macroeconomic conditions [65] - FX hedging strategies helped limit losses, with a positive M2M valuation on the derivative portfolio [31][57] Question: Ukraine operations and 5G licensing - Ukraine operations performing well despite the war, but future performance remains uncertain due to the ongoing conflict [67] - 5G licensing expected in 2024, with no immediate regulatory changes anticipated [62] Question: Financial expenses and hedging impact - Financial expenses increased due to FX movements, but hedging strategies mitigated losses, with a net long FX position of US$84 million [52][57]

Company Participants Conference Call Participants Operator At this time, I would like to turn the conference over to Mr. Ali Serdar YaÄcı, Investor Relations and Corporate Finance Director. Mr. YaÄcı you may now proceed. Thank you Gaily. Hello everyone. Welcome to Turkcell's first quarter 2023 results call. Today our CEO, Mr. Murat Erkan; and Acting CFO, Mr. Kamil Kalyon will be delivering a brief presentation on operational and financial results. And afterwards we will be doing Q&A. Now I'm handing over to ...

Turkcell Group Q1 2023 Highlights: A Promising Start to the Year 17.3 Bn TL MOBILE ARPU 67GROWTH* .9%YoY ₺ Accelerating topline growth despite earthquake effect | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------|-------------------------|-------|-------|------------------------------------------------|-----------------------------------------|------------------------------|---------------|--------------|-----------------------------------------------------| ...

Financial Performance - Net cash inflow from operating activities decreased to TRY 25,459.6 million in 2022 from TRY 38,935.1 million in 2021, primarily due to inflation adjustments[1023]. - Net cash outflow from investing activities increased to TRY 19,042.6 million in 2022, up from TRY 17,721.6 million in 2021, mainly due to cash outflows for property, plant, and equipment[1024]. - Net cash inflow from financing activities for 2022 was TRY 2,067.5 million, a significant improvement from a net cash outflow of TRY 7,397.3 million in 2021, driven by decreased dividends and increased loan proceeds[1025]. - Cash generation from issuance of loans and borrowings increased to TRY 32,250.0 million in 2022 compared to TRY 26,188.0 million in 2021[1025]. - The total cash and cash equivalents increased by TRY 8,484.5 million in 2022, compared to an increase of TRY 13,816.2 million in 2021[1023]. - The change in working capital decreased to TRY (1,688.7) million in 2022 from TRY 124.8 million in 2021, influenced by various receivables and payables adjustments[1023]. Debt and Liquidity - The company has a bond issuance certificate approved for up to USD 1 billion to enhance liquidity and finance operations[1032]. - A sustainability-linked loan agreement of EUR 70 million was extended to December 2026, with terms dependent on meeting environmental objectives[1037]. - The company signed a EUR 50 million Green Loan agreement to finance sustainable investments, with a total annual cost of Euribor+1.95%[1038]. - Turkcell signed a USD 90 million, 10-year export finance facility to finance procurement from a global vendor, with a total annual cost of 3.04%[1041]. - Turkcell issued TRY 500 million in debt securities with a 25.50% interest rate on November 23, 2022, as part of a TRY 1.0 billion program approved by the Board[1042]. - Turkcell Superonline issued lease certificates totaling TRY 200 million with interest rates ranging from 19.25% to 24.0% in 2022 and 2023[1045]. - As of February 2023, Turkcell Superonline has TRY 1.9 billion in short-term loans and TRY 1.4 billion in intra-group loans[1047]. - Financell's total loan portfolio was TRY 2.5 billion as of December 31, 2022, with 5% in foreign currency loans[1048]. - Turkcell Group's total loan exposure is TRY 8,906.9 million as of December 31, 2022[1056]. - Turkcell has a strong liquidity position with USD 1.4 billion in cash equivalents, covering debt service due in the next two years[1057]. - The debt-to-equity ratio improved to 81.1% as of December 31, 2022, down from 92.4% in the previous year[1058]. Operational Challenges - The company faces pressures from high inflation, currency devaluation, and increased capital needs for technological advancements and infrastructure investments[1060]. - The company anticipates that measures taken in response to the COVID-19 pandemic may significantly impact customer usage of networks and services, affecting revenues and liquidity[1102]. - The company has experienced a substantial decrease in international travel, adversely affecting roaming services[1102]. - The company continues to face risks related to currency devaluation and geopolitical factors, which may impact future asset values[1104]. Subscriber and Revenue Trends - The proportion of postpaid subscribers in the company's subscriber base in Turkey was 68.1% in 2022, up from 66.4% in 2021[1080]. - The company anticipates an increase in revenues from mobile data and digital services, while revenues from voice and SMS are expected to decline[1081]. - The ICTA has set maximum tariffs for national voice at TRY 1.55 per minute and for national SMS at TRY 1.11, effective October 1, 2022[1086]. Governance and Management - The Board of Directors has been expanded from seven to nine members, enhancing governance and decision-making processes[1109]. - The company has a diverse executive team, including roles focused on finance, marketing, and digital services, to drive strategic initiatives[1113]. - For the year ended December 31, 2022, Turkcell provided, paid, and accrued an aggregate of TRY 154.1 million to key management personnel, including indemnities, salaries, bonuses, and other benefits[1141]. - The company raised employee salaries twice in 2022 due to accelerated inflation, reflecting a commitment to maintaining competitive compensation[1163]. - Turkcell's employee training programs include both classroom and e-learning formats, ensuring comprehensive onboarding and ongoing development[1166]. Employee and Workforce Changes - As of December 31, 2022, Turkcell employed a total of 23,795 employees, a decrease from 25,638 in 2021, reflecting a reduction of approximately 7%[1157]. - The number of employees in the Corporate & Residential Sales department decreased significantly from 760 in 2021 to 454 in 2022, a decline of approximately 40%[1157]. - The total number of employees in Turkcell Global Bilgi decreased from 17,347 in 2021 to 15,837 in 2022, a reduction of approximately 9%[1157]. - Turkcell's Directors and Officers Liability Insurance coverage amount is USD 40 million, renewed until October 1, 2023[1141]. - The company has not experienced any work stoppages and has no collective bargaining agreements with employees[1167]. - The "Flexible Remote Working Model" allows employees to work remotely, enhancing operational flexibility[1168]. Shareholder Information - As of April 17, 2023, the total outstanding shares of the company amount to 2,200,000,000, with 54% publicly held[1174]. - TVF Bilgi Teknolojileri Iletisim Hizmetleri Yatirim Sanayi ve Ticaret A.S. holds 26.2% of the shares, making it the largest shareholder, while IMTIS Holdings S.à r.l. owns 19.8%[1174]. - The company has created a new class of Group A shares, representing 15% of total issued share capital, which grants certain voting privileges[1172]. - The company completed a significant transaction on October 22, 2020, where TVF BTIH acquired a 26.2% direct interest in the company[1178]. - The acquisition by TWF was financed through an acquisition loan, with payments starting approximately three years after the acquisition[1180]. - As of April 17, 2023, the company had 78,251,634 ADRs outstanding held by 63 registered ADR holders[1181]. - The company has entered into agreements with executive officers and shareholders, ensuring terms comparable to those available in unrelated party transactions[1183]. - 0.05% of shares, with a nominal value of TRY 995,509, have been pledged by shareholders as security in favor of banks[1181].

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Q4 2022 Earnings Conference Call March 9, 2023 12:00 PM ET Company Participants Ali Serdar Yağcı - Investor Relations & Corporate Finance Director Murat Erkan - Chief Executive Officer Kamil Kalyon - Acting Chief Financial Officer Conference Call Participants Mandaci Ece - Unlu Securities Annenkov Evgeny - Bank of America Operator Ladies and gentlemen, thank you for standing by. I am Maria, your Chorus Call operator. Welcome, and thank you for joining the Turkce ...

Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) Q3 2022 Earnings Conference Call November 3, 2022 12:30 PM ET Company Participants Ali Serdar Yac - Investor Relations & Corporate Finance Director Murat Erkan - Chief Executive Officer Osman Yilmaz - Chief Financial Officer Conference Call Participants Kennedy-Good Jonathan - JPMorgan Nagy Nora - Erste Group Demirak Kayahan - AK Investment Operator Ladies and gentlemen, thank you for standing by. I'm Mina, your Chorus Call operator. Welcome and thank you for joi ...

| --- | --- | |-----------------------------------------------|-------| | | | | TURKCELL GROUP Q3 2022 \| November 3, 2022 | | | | | | --- | --- | --- | --- | --- | |-------|-------|-------|--------------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Murat Erkan Turkcell CEO BUSINESS OVERVIEW | | | | | | | | Turkcell Group Third Quarter Highlights 700 REVENUE 56.7%YoY 14.7 Bn TL 1 Mn TOTAL NET ADD EBITDA 48.7%YoY 6.0 Bn TL 240 K NEW HOMEPASS NET INCOME 67.6%Y ...